Correlation Between Catalyst Bancorp and BE Semiconductor
Can any of the company-specific risk be diversified away by investing in both Catalyst Bancorp and BE Semiconductor at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Catalyst Bancorp and BE Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalyst Bancorp and BE Semiconductor Industries, you can compare the effects of market volatilities on Catalyst Bancorp and BE Semiconductor and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Catalyst Bancorp with a short position of BE Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Bancorp and BE Semiconductor.
Diversification Opportunities for Catalyst Bancorp and BE Semiconductor
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Catalyst and BESIY is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Bancorp and BE Semiconductor Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BE Semiconductor Ind and Catalyst Bancorp is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Catalyst Bancorp are associated (or correlated) with BE Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BE Semiconductor Ind has no effect on the direction of Catalyst Bancorp i.e., Catalyst Bancorp and BE Semiconductor go up and down completely randomly.
Pair Corralation between Catalyst Bancorp and BE Semiconductor
Given the investment horizon of 90 days Catalyst Bancorp is expected to generate 2.54 times less return on investment than BE Semiconductor. But when comparing it to its historical volatility, Catalyst Bancorp is 2.64 times less risky than BE Semiconductor. It trades about 0.09 of its potential returns per unit of risk. BE Semiconductor Industries is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 12,500 in BE Semiconductor Industries on May 29, 2025 and sell it today you would earn a total of 1,700 from holding BE Semiconductor Industries or generate 13.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Catalyst Bancorp vs. BE Semiconductor Industries
Performance |
| Timeline |
| Catalyst Bancorp |
| BE Semiconductor Ind |
Catalyst Bancorp and BE Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Bancorp and BE Semiconductor
The main advantage of trading using opposite Catalyst Bancorp and BE Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Bancorp position performs unexpectedly, BE Semiconductor can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in BE Semiconductor will offset losses from the drop in BE Semiconductor's long position.| Catalyst Bancorp vs. Community West Bancshares | Catalyst Bancorp vs. Liberty Northwest Bancorp | Catalyst Bancorp vs. Pioneer Bankcorp | Catalyst Bancorp vs. Summit Bancshares |
| BE Semiconductor vs. Asm Pacific Technology | BE Semiconductor vs. Disco Corp ADR | BE Semiconductor vs. Lasertec | BE Semiconductor vs. Sumco Corp ADR |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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